…. secures $105.33m out of total of $876.26 million at a rate of N1,495/$1

Oredola Adeola

The Dangote Oil & Gas Company Limited received $5.33 million for the importation of gasoil and low-pour fuel oil (LPFO), during the most recent Retail Dutch Auction conducted by the Central Bank of Nigeria (CBN).

This amount was allocated for the purchase of gasoil and low-pour fuel oil (LPFO), essential for energy production and industrial operations.

Dr. Omolara Omotunde Duke, the Director of the Financial Markets Department at the CBN, announced the auction’s results in a recent statement obtained by Advisors Reports.

The statement disclosed that the Central Bank sold a total of $876.26 million at a rate of N1,495/$1 to 26 qualified banks during the auction.

According to Dr. Duke, the auction was aimed at reducing demand pressure in the foreign exchange (FX) market and promoting price discovery.

Among the bids, Dangote Oil & Gas made the largest single bid of $2.5 million for the purchase of 15,000 metric tons of gasoil, while the other part was for Low-Pour Fuel Oil (LPFO) a heavy fuel oil primarily used in industrial boilers, power generation, and as marine fuel.

This was part of the broader $105.33 million allocation secured by various Dangote Group subsidiaries, making the conglomerate one of the major recipients in the CBN’s latest successful FX bids.

Zenith Bank, Access Bank, Providus Bank, Union Bank, and Sterling Bank were the primary banks that secured the most FX for Dangote’s firms in this auction.

Notably, four of these banks are also ranked among the top 10 banks that obtained the most FX in the CBN’s auction.

The Dangote Group’s total allocation represents approximately 13% of the $876.26 million distributed among qualified banks by the CBN.

Of the group’s subsidiaries, Dangote Sugar Refinery received the largest allocation, amounting to $87.42 million.

This was used for the importation of Brazilian cane raw sugar, including a significant transaction of $10.96 million for 16,000 metric tonnes of raw sugar.

Dangote Cement secured $9.03 million, primarily for the procurement of spare parts for cement plant machinery. Meanwhile, Dangote Industries Limited was allocated $2.5 million for the importation of gas turbines.

Additionally, Dangote Agro Sacks Limited received $941,600.96 for spare parts required for textile machinery and manufacturing equipment.

Smaller allocations were also made to Dangote Sinotruk West Africa Limited and Dangote Coal Mines Ltd, amounting to $7,161.50 and $104,568.68 respectively.